NGX All-Share Index Crashes by 1.10% to 64,337.52 points

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited suffered a 1.10 per cent loss on Monday, July 31, 2023, as a result of sustained profit-taking, especially in the banking, consumer goods and industrial goods sectors.

The decline suffered by the stock market happened as organised labour is preparing to shut down the economy from Wednesday in protest of the rising cost of goods and services in the country.

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have threatened to embark on a nationwide strike from August 2 to force the government to roll out palliatives for the people.

The proposed action by the unions may have triggered panic selling of stocks yesterday, as the All-Share Index (ASI) went down by 718.87 points to 64,337.52 points from 65,056.39 points, and the market capitalisation depreciated by N391 billion to N35.012 trillion from N35.403 trillion.

During the session, the banking index decreased by 2.55 per cent, the consumer goods counter fell by 1.42 per cent, and the industrial goods sector depreciated by 0.03 per cent. However, the insurance sector improved by 1.58 per cent, and the energy counter grew by 0.40 per cent.

The rise in the activity level and the number of price losers showed the mood of the market on Monday.

Investors bought and sold 673.4 million equities worth N6.5 billion in 9,788 deals yesterday, in contrast to the 459.8 million equities worth N5.4 billion traded in the preceding trading day in 8,051 deals, implying an increase in the trading volume, value and the number of deals by 46.46 per cent, 20.37 per cent, and 21.57 per cent apiece.

Abbey Mortgage Bank topped the activity chart as it traded 112.3 million shares valued at N112.3 million, Fidelity Bank sold 58.6 million equities for N503.7 million, Union Bank transacted 51.1 million stocks valued at N357.6 million, FCMB traded 49.4 million shares worth N323.7 million, and Universal Insurance exchanged 47.5 million stocks for N11.2 million.

Business Post reports that investor sentiment was very weak on the first trading day of the new week, as the bourse ended with 49 depreciating equities and 19 appreciating equities.

Livestock Feeds, Caverton, NPF Microfinance Bank, Ecobank, and Dangote Sugar all lost 10.00 per cent each to close at N1.89, N1.17, N1.80, N15.30, and N27.00, respectively.

On the other side, Linkage Assurance, Sunu Assurances, AXA Mansard, and Beta Glass gained 10.00 per cent each to trade at 77 Kobo, 66 Kobo, N3.74, and N38.50 apiece, as Berger Paints grew by 9.95 per cent to N11.05.